Did California enact a ten-year ‘exit tax’ on departing wealthy residents?
By Lisa Freedland
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NO
Legislators in California’s lower house last year proposed a new wealth tax. Under their bill, residents moving out of the state would have been taxed at a declining rate for up to ten years after they left. The bill didn't progress.
The tax would also have fallen on temporary and part-year residents. The 0.4% tax would have affected about 30,400 taxpayers with a net worth over $30 million, raising a projected $7.5 billion per year. (In its current fiscal year the state expects to collect about $106 billion in regular income taxes.)
Lawmakers may reintroduce the bill in the 2021 legislative session.
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Sources
California State Assembly Democratic Caucus California State Assembly Democratic Caucus: Member Bob Ronta leads push for first-in-nation wealth tax
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